How do you file pension for Illinois if you now currently live in Alabama?

[merrihay66]

I used to live in Indiana, my husband, who is deceased, worked for construction company there and in Illinois. Now that he has passed I receive his pension but I moved to Alabama and I’m trying to find the correct way on filing.

[DoninGA]

If you did not live in Illinois when the pension income was received then you do not file an Illinois state income tax return.  The pension income would be reported on your Alabama return.

You should have received a Form 1099-R for the pension income.  Report the Form 1099-R in the federal section of the program, this will flow to the Alabama state tax return.

To enter, edit or delete a form 1099-R -

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Scroll down to Retirement Plans and Social Security
On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

Or enter 1099-r in the Search box located in the upper right of the program screen. Click on Jump to 1099-R

On the screen Did you get a 1099-R in 2023? Click on Yes

On the next screen click on Continue

On the screen Let's import your tax info Click on Change how I enter my form

On the screen How do you want to add your 1099‑R? Click on Type it in myself

On the screen Who gave you a 1099-R? select the type of 1099-R you received and Continue

[SharonD007]

If you lived in AL for the entire year of 2023, you won't report the 1099--R pension income in any other state.  If you moved to AL in 2023, you will file a part-year resident return for AL and a part-year resident return for IN.  It doesn't matter what state your deceased husband worked in; only the state that you were a resident of when you received the pension.

Follow the steps below to enter your 1099-R:

1. Open or continue your return
2. In the Federal section, select Wages & Income
3. Scroll to locate Retirement Plans and Social Security, and select Show more
4. Select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).

For more information, please refer to the TurboTax Help article Where do I enter my 1099-R?

Please accept my sincere apologies for your loss.

@merrihay66 

[merrihay66]

Okay, so just to verify that I understand correctly. I have lived in Alabama the entire year of 2023, so I am supposed to add the pension 1099-R to federal? Or no. 

thank you for your help 

[DawnC]

Yes, everything gets entered in the federal section.   TurboTax will apply it to your Alabama return automatically.    You will only have one state return - for Alabama.   

Where do I enter 1099-Rs?